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1. Company Snapshot

1.a. Company Description

Medical Properties Trust, Inc.is a self-advised real estate investment trust formed in 2003 to acquire and develop net-leased hospital facilities.From its inception in Birmingham, Alabama, the Company has grown to become one of the world's largest owners of hospital real estate with 441 facilities and approximately 44,000 licensed beds as of September 30, 2023.


Since the end of the third quarter, the Company has sold four facilities and now owns approximately 43,000 licensed beds in nine countries across three continents.MPT's financing model facilitates acquisitions and recapitalizations and allows operators of hospitals to unlock the value of their real estate assets to fund facility improvements, technology upgrades and other investments in operations.

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1.b. Last Insights on MPW

Medical Properties Trust's recent performance is driven by a 12.5% dividend increase, signaling management's confidence in the company's turnaround. The REIT's funds from operations comfortably cover the dividend, and a new $150 million share repurchase program highlights management's belief in its undervaluation. Improved rent collections, revenue growth, and long-term leases also contribute to the positive trend. Additionally, the company's solid balance sheet position and financial flexibility support its growth. (Source: Medical Properties Trust: Huge Dividend Surprise)

1.c. Company Highlights

2. Medical Properties Trust's Q3 2025 Earnings: A Mixed Bag

Medical Properties Trust reported normalized FFO of $0.13 per share for the third quarter of 2025, missing analyst estimates of $0.16. The company's revenue growth was driven by its tenants' exceptional performance, with General acute care operators reporting a $200 million increase in EBITDARM year-over-year. Despite this, the company's EPS was affected by net impairments of approximately $82 million, largely related to Prospect and the decline in expected proceeds of certain Pennsylvania and Rhode Island assets.

Publication Date: Nov -07

📋 Highlights
  • Tenant EBITDARM Growth:: General acute care operators increased EBITDARM by $200M YoY; post-acute by $50M, behavioral health by $10M.
  • Prospect Bankruptcy Settlement:: NOR Healthcare acquired 6 California facilities; $45M paid to Prospect by Yale New Haven.
  • Share Repurchase Authorization:: $150M allocated for opportunistic stock buybacks, citing undervalued assets.
  • Normalized FFO Performance:: Q3 2025 normalized FFO at $0.13/share (excluding $0.01 rent payment delay), $82M in impairments linked to Prospect and regional assets.

Operational Highlights

The company's operational performance was a bright spot, with its tenants delivering exceptional results. The behavioral health portfolio saw a $10 million year-over-year increase in EBITDARM, and the company's international operators in Europe comprised approximately 50% of its total portfolio, with coverages exceeding 2x. The Sulis Hospital in the U.K. received accreditation as an elective surgical hub, a notable achievement.

Progress on Prospect Bankruptcy

Medical Properties Trust made progress in the Prospect bankruptcy process, with NOR Healthcare Systems being named the successful bidder for Prospect's 6 California facilities. The company also reached a settlement agreement with Yale New Haven and Prospect, where Prospect will receive $45 million from Yale. This development is expected to have a positive impact on the company's future performance.

Valuation and Outlook

With a P/E Ratio of -4.28 and a P/B Ratio of 0.65, the company's valuation appears to be reasonable. Analysts estimate revenue growth of 6.8% for the next year, which could potentially drive the stock price higher. However, the company's Net Debt / EBITDA ratio of 3.59 and ROE of -14.83% are concerns that investors should consider. The company's $150 million share repurchase program demonstrates its commitment to returning value to shareholders.

Liquidity and Capital Strategy

Medical Properties Trust has been actively managing its liquidity and capital structure, repaying and refinancing several billion dollars of debt in 2025. The company is evaluating the sale or lease of several assets that are not currently yielding meaningful returns, and is considering sales of earning assets and portfolios for attractive gains. This strategy is expected to improve the company's financial flexibility and drive future growth.

3. NewsRoom

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3 High-Yield Dividend Stocks I'm Buying to Boost My Passive Income in December

Dec -01

Source: fool.com

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Medical Properties Trust, Inc. (NYSE:MPW) Receives $5.50 Average Price Target from Analysts

Nov -30

Source: defenseworld.net

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Medical Properties Stock Rises 27% in 3 Months: Will the Trend Last?

Nov -26

Source: zacks.com

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Medical Properties Trust: Latest Dividend Raise Foretells Stability (Rating Upgrade)

Nov -21

Source: seekingalpha.com

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Medical Properties Trust: Huge Dividend Surprise

Nov -19

Source: seekingalpha.com

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National Healthcare Properties Announces Andrew T. Babin as Chief Financial Officer

Nov -18

Source: globenewswire.com

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Medical Properties Rewards Investors With 12.5% Dividend Hike

Nov -18

Source: zacks.com

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The State Of REITs: November 2025 Edition

Nov -18

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.47%)

6. Segments

Rent Billed

Expected Growth: 4.5%

The 4.5% growth in Rent Billed from Medical Properties Trust, Inc. is driven by increasing demand for healthcare services, aging population, and consolidation in the healthcare industry. Additionally, the company's strategic acquisitions and investments in high-quality medical properties, as well as its strong relationships with leading healthcare operators, contribute to its growth.

Straight-line Rent

Expected Growth: 4.8%

Strong demand for healthcare services, aging population, and increasing healthcare expenditure drive Medical Properties Trust's straight-line rent growth. Additionally, the company's diversified portfolio of medical facilities, strategic acquisitions, and long-term leases with high-quality tenants contribute to its 4.8% growth rate.

Income from Financing Leases

Expected Growth: 4.2%

The 4.2% growth in Income from Financing Leases from Medical Properties Trust, Inc. is driven by increasing demand for healthcare services, expansion of existing medical facilities, and strategic acquisitions of new properties. Additionally, the company's diversified portfolio of medical office buildings, hospitals, and other healthcare facilities has contributed to the growth.

Interest and Other Income

Expected Growth: 4.0%

The 4.0% growth in Interest and Other Income from Medical Properties Trust, Inc. is driven by increasing investments in healthcare real estate, rising demand for medical facilities, and growing rental income from existing properties. Additionally, strategic acquisitions and partnerships have expanded the company's portfolio, contributing to the growth.

7. Detailed Products

Hospital Real Estate Investments

Medical Properties Trust, Inc. invests in hospital real estate, providing capital to hospital operators in exchange for long-term leases.

Medical Office Buildings

The company invests in medical office buildings, providing healthcare providers with facilities to operate their practices.

Surgical Hospitals

Medical Properties Trust, Inc. invests in surgical hospitals, providing specialized facilities for outpatient surgical procedures.

Rehabilitation Hospitals

The company invests in rehabilitation hospitals, providing specialized facilities for patients requiring intensive rehabilitation therapy.

Long-Term Acute Care Hospitals

Medical Properties Trust, Inc. invests in long-term acute care hospitals, providing specialized facilities for patients requiring extended hospital stays.

Behavioral Health Facilities

The company invests in behavioral health facilities, providing specialized facilities for patients requiring mental health and addiction treatment.

8. Medical Properties Trust, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Medical Properties Trust, Inc. operates in a niche market, providing real estate financing solutions to healthcare operators. While there are some substitutes available, such as traditional lenders and private equity firms, the company's specialized expertise and relationships with healthcare operators provide a competitive advantage.

Bargaining Power Of Customers

Medical Properties Trust, Inc.'s customers are primarily healthcare operators, who have limited bargaining power due to the specialized nature of the company's services and the importance of maintaining relationships with healthcare providers.

Bargaining Power Of Suppliers

Medical Properties Trust, Inc. has a diversified portfolio of investments, which reduces its dependence on any single supplier. Additionally, the company's strong financial position and reputation in the industry give it bargaining power in negotiating with suppliers.

Threat Of New Entrants

The barriers to entry in the healthcare real estate financing market are relatively high, due to the specialized nature of the business and the need for strong relationships with healthcare operators. This limits the threat of new entrants to Medical Properties Trust, Inc.'s market.

Intensity Of Rivalry

The healthcare real estate financing market is moderately competitive, with a few established players competing for market share. However, Medical Properties Trust, Inc.'s strong track record and relationships with healthcare operators provide a competitive advantage.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 56.90%
Debt Cost 3.95%
Equity Weight 43.10%
Equity Cost 10.00%
WACC 6.56%
Leverage 132.00%

11. Quality Control: Medical Properties Trust, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Omega Healthcare

A-Score: 6.8/10

Value: 3.5

Growth: 3.0

Quality: 8.5

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

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CareTrust REIT

A-Score: 6.7/10

Value: 2.2

Growth: 4.4

Quality: 7.9

Yield: 9.0

Momentum: 7.0

Volatility: 9.7

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Sabra Health Care REIT

A-Score: 6.5/10

Value: 4.1

Growth: 3.4

Quality: 6.8

Yield: 10.0

Momentum: 5.0

Volatility: 9.7

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Healthcare Realty Trust

A-Score: 5.9/10

Value: 4.4

Growth: 2.9

Quality: 3.3

Yield: 10.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

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Ventas

A-Score: 5.4/10

Value: 1.3

Growth: 3.6

Quality: 4.2

Yield: 7.0

Momentum: 7.0

Volatility: 9.3

1-Year Total Return ->

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Medical Properties Trust

A-Score: 5.3/10

Value: 6.7

Growth: 0.9

Quality: 3.2

Yield: 10.0

Momentum: 7.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.48$

Current Price

5.48$

Potential

-0.00%

Expected Cash-Flows